Research on the political and social impacts of financial crises has focused chiefly on free market economies, hindering our understanding of their effects in other settings. We exploit an episode of a financial crisis that hit the Israeli kibbutzim to study its impact in a socialist context....

What limits the capacity of society to redistribute and provide insurance? What determines the structure of compensation in organizations aiming at income equality? This paper investigates these questions by investigating the economic and sociological forces underlying the persistence of the...